DERRY City and Strabane District Council (DCSDC) says it remains hopeful funding can be put in place to secure City of Derry Airport’s future.
In July it emerged the council-owned airport could close next year because of a funding shortfall.
A £2.5million government package promised in 2016 has yet to be paid because of Stormont’s collapse.
DCSDC’s chief financial officer Alfie Dallas said the airport could operate until 2021 if funding is released.
Alfie Dallas told councillors on the assurance, audit and risk committee on Monday that council “remains hopeful that funding will be released and that it, along with council’s current subsidy, will be sufficient to fund the airport at its current level of operation until 31 March 2021.”
He added: “In the event that these funds are not secured, council’s current subsidy will be sufficient to meet the cost of operations at a reduced level for a minimum period of six months after May 2019, where the viability of the airport over the short and medium term will be considered and appropriate actions taken.”
City of Derry Airport is owned by Derry City and Strabane District Council.
The money is needed to ensure the continuation of the Stansted service, a public service obligation (PSO) air route meaning it would not be commercially viable without government support.
The Stansted route is currently funded with help of the Department of Transport but this is due to run out in 2019.
Mr Dallas told councillors significant efforts are ongoing to secure the London route funding.
Discussions are ongoing with the Department for Transport in London and relevant senior civil servants, he added, with a view to the London PSO being tendered later this year.
Councillors were also told the Northern Ireland Audit Office has recommended the local authority continues with to work through the possible alternatives in an effort to reach a timely resolution to the airport’s financial issues.
